ECO22GROUP Assignment - 1.0 Introduction Market structure refer to the situation of the competition among the firms in the market for selling goods

ECO22GROUP Assignment - 1.0 Introduction Market...

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1.0 Introduction Market structure refer to the situation of the competition among the firms in the market for selling goods and services. The structures of market for goods market and also services market are determined by the nature of competition which is in a particular market. Basically, the term of “market” are refer to a particular place where the goods and service are being purchased and sold. But in economics, it is not just a particular market however it is a much wider place than the particular market. There are many types of market structures that can characterize and differentiated. So, basically, there are four types of market structures which are perfect competition, monopolistic competition, and monopoly. Each types of the market structure got different characteristics. For example, the market form characteristics for the four types of market structure can be classified by the number of firms, type of product, conditions for entry, control over price and also price elasticity of demand. The aim of the perfect competition market are builds based on the following assumptions which are all firms are trying to maximize the income and minimize the cost, there is a free entry and exit to the market, the product sold by every firms are the same goods. Second, the monopolistic competition are having large number of sellers in the market and all the firms is the market are produce different types of product to sell to the customer. From this, we can see that there is just a bit different in the perfect competition and monopolistic competition. Nestle company is a multinational food and beverage processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest food company in the world since the year 2014. The Nestle company rank No.64 on the Fortune Global 500 in the year 2017 and they also rank No.33 on the 2016 edition of the Forbes Global of the top 2000 public company in the world. Many types of products are produce by the Nestle company such as baby food, coffee, cereals, bottled water, ice cream, instant noodles and so. Next, Nestle company also have many competitor such as Yeo’s, Dutch Lady, Hershey and so on. There are a lot of issues which face by the Nestle company. The dispute between breast feeding and formula feeling, especially when it comes down to the Nestle company. In 1977, campaigners first called for a boycott of Nestle according to its aggressive and unreal marketing of infant formula to Third World countries. Besides, this consists of more than 200 groups in many country infant formula. 1
Nevertheless, regardless of the boycott, the Nestle company produces a extremely high quality infant formula and this make the product successfully marketed in North America, Europe and Asia. Therefore it make sense for the company to try the market formula in Africa using the same strategy. However, the Nestle company have failed to account important cultural and economic differences.

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